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Red River Valley | Farmers are selling corn at this point with no real buyers out there.
I think it is also clear that long only commodity funds are being liquidated or having redemptions against them
Farmers are not a cash rich as many want everybody to believe and are needing to produce cash for many reasons.
I think they had to hole up for a while but I do think the funds have found the path in to the rat hole and they have some one to follow them down that hole.
I expect $4.10 to be breached tonight or tomorrow and maybe a flush to happen on Friday or Monday -- my best guess is that I will be getting long corn in and around this time frame
the finial leg of the process has started IMO and it will be volatile but relativity short lived.
the amount of money farmers gave up on call options today may very well matter in the long run.
A .50 cent rally may very well be in the cards soon the problem is from what level.
all old crop short corn positons will be off 5 min after the open tonight also 1/3 of the beans positions will be off at that time
I will try to go long corn tonight couple of contracts $4.10 level will not do as much at this level as originally thought Will save some for the $4.00 1/2 level for tomorrow
Talked to a lot of farmers that are buying puts .30 under the market these same guys would not even listen to protection talk 4 months ago.
lot of guys with basis contracts that are very long in the face - they think maybe they will get double cut at this point as it very well looks like basis will have to do the work going forward. | |
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Friday's USDA Reports
